The use of Bitcoin for contractual agreements has been approved by Argentina’s new government. Diana Mondino, the country’s Minister of Foreign Affairs, made the announcement on X (formerly known as Twitter). Ms Mondino also stated the government’s willingness to accept and formalize contracts denominated in cryptocurrency in her post.
This comes just one day after Argentina’s President, Javier Milei, unveiled a slew of measures to help the country’s struggling economy. These include the elimination or modification of more than 300 rules by presidential decree, including those governing rent and labor practices.
In her post on Thursday, Ms Mondino said, “We ratify and confirm that in Argentina contracts can be agreed in Bitcoin. And also any other crypto and/or species such as kilos of steer or litres of milk.”
We have validated and confirmed that contracts can be negotiated in Bitcoin in Argentina.
“Art 766. – Obligation of the debtor. The debtor must deliver the corresponding amount of the designated currency, whether the currency is legal tender in the Republic or not,” she added.
Mr Milei had made very positive comments about Bitcoin while campaigning for the presidential election.
“The central bank is a scam, a mechanism by which politicians cheat the good people with inflationary tax,” he had said, adding that Bitcoin “represents the return of money to its original creator, the private sector”, and that “it prevents politicians from robbing you through inflation”.
Ms Mondino did not go into specifics about implementation or legal nuances, but her announcement is a significant step toward establishing Bitcoin as a recognized means of conducting formal agreements.
After decades of debt and financial mismanagement, Latin America’s third-largest economy is on its knees, with inflation exceeding 160 percent year on year and 40 percent of Argentines living in poverty.